LorrinCFA

cfacowtown Wrote:
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> Question 6:
> Which of the following is LEAST LIKELY to be
> considered a “material” piece of information
> regarding a company:
>
> A. Changes in company management.
>
> B. A government report of economic trends
> affecting a company.
>
> C. Loss of a customer representing a significant
> portion of a company’s gross sales.
>
> D. A former CFO of the company predicting
> long-term decline in the company’s stock.
>
> I am a little confused here. Personally I think
> government statistics is a relevant analytical
> tool, but is not really material to a specific
> company per se. Its hard to discount economic
> trends given there significance, but in this
> question, the other three options would no doubt
> provide a reasonable assumption of a change in the
> perception of the value of the companies stock.
> I could be wrong on both of these. Thoughts???
I would think that the CFO prediction would have the least impact on the stock price and be immaterial. The gov’t report could be material if its related to the co’s business.
i would say D is immaterial.